$348.98M liquidated as Bitcoin and Ethereum lead crypto market drop

$348.98M Liquidation: Bitcoin and Ethereum Take the Lead in Crypto Market Downturn

The cryptocurrency market, spearheaded by Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), encountered an unexpected decline on Sunday evening, leaving analysts speculating about the causes behind this shift. Notably, the sudden drop followed a triumphant rally that witnessed Bitcoin surge above $43,000 and Ethereum surpass $2,300.

Despite a sustained two-week Bull Run, the cryptocurrency market has taken a breather, with Bitcoin and Ethereum experiencing a slight pullback. At present, Ethereum has witnessed a drop of 4.57%, trading at $2,246, slightly above its overnight low of $2,202. On the other hand, Bitcoin has dropped by 4.02% and is currently trading at $42,183, slightly above its overnight low of $41,649.

According to Coinmarketcap, the global cryptocurrency market cap now stands at $1.58 trillion, showcasing a decrease of 3.28% in the last 24 hours. Despite this dip, the total market volume has increased by 5.20%, reaching $62.92 billion. Notably, Bitcoin’s dominance has slightly decreased to 52.29%. Meanwhile, stablecoins dominate the market volume, accounting for $54.85 billion, which is 87.18% of the total 24-hour volume.

Although there were no significant negative events over the weekend, analysts attribute this correction to the market easing pressure after the impressive surge in prices. This correction, viewed as a natural part of market dynamics, signifies a repositioning and profit-taking by investors.

Due to the sudden price drops across the cryptocurrency market in the last 24 hours, traders experienced over $396 million in liquidations, as reported by Coinglass liquidation data. The 12-hour timeframe alone witnessed a substantial $349.15 million in liquidations, with Bitcoin and Ethereum long positions bearing the brunt, accounting for $95.08 million and $74.53 million, respectively. Most of the liquidations, amounting to $309.93 million, occurred in long positions as traders previously held a highly bullish stance.

This data underscores the impact of market fluctuations on trader positions and its potential influence on overall market sentiment.

(Source: Invezz)